Two years ago, Mr Putin and his wife Lyudmila arrived at Krasnaya Polyana for a brief holiday.

With bodyguards in tow, the president headed out for an afternoon off-piste on the nearby Engelmanova Polyana, a pristine mountain accessible only by helicopter.

Since that day, his visit has been a favourite topic of conversation in the town.

Ivan Fulopulo, who works on the lifts, said: "The president even spoke to my son Ponayot. He asked him if he could ski. His visit helped us a lot. More and more people are coming now."

Yuliya Volodkina, who works in a small ski equipment shop, said: "A lot of people who come here ask us about the president's visit. It has made our resort very popular."

Locals still tell how the president, ever a reserved man, gave his seal of approval to the glorious vistas, gentle climate and snow quality.

The presidential nod was enough to galvanise Mr Potanin and a host of other Kremlin favourites.

Gazprom, the murky mega-heavyweight of the Russian energy sector, began building a huge corporate chalet complete with satellite villas.

Mr Potanin is rumoured to be behind the construction of a sumptuous complex for the president, complete with its own helipad.

The compound, just visible from the top of ski-lift No 3, will house the president and his entourage for the few days of the year he spends in the mountains.

Political and business analysts point to the development as the shape of things to come in Russia.

St Petersburg, Mr Putin's long-time home and favourite city, has also been the target of hundreds of millions of pounds of public and private investment to spruce it up for its 300th anniversary this year.

One project alone, the renovation of the Konstantinovsky Palace which overlooks the Gulf of Finland, has sucked up more than £120 million.

For critics, such lavish schemes are evidence of an unhealthy Russian penchant for fawning over their leaders. They draw parallels between Mr Putin and the tsars.

Sergei Belov, the editor of the Sochi daily Chernomorskaya Zdravnitsa, said: "When Yeltsin played tennis, everybody played tennis. Now everybody does judo or skis. It goes to the heart of the Russian nation. When the tsar laughed, everybody else laughed too."

But those enjoying the slopes said their enthusiasm had little to do with the president. Anastasia and Ksenya Podshibyakini, sisters from Moscow, were in Krasnaya Polyana for the third year.

Archetypal modern Russians, Ksenya is studying Korean and economics at Moscow University and Anastasia Japanese.

"We don't like politics," Anastasia said. "But we need development in this country. The fact that Putin is involved in skiing can only be good news for investment."

Alexander Fomitchev, a snowboard instructor with a prominent stud in his chin and a Bob Marley hat, was resting at Cafe 1144, halfway up the slopes.

In the corner was a photograph of Vladimir and Lyudmila Putin eating pancakes with honey and drinking tea at the same tables two years ago.

Alexander said: "Putin's interest in skiing is good for Russia. There are now training centres all over the country and the developments are attracting lots of investment."

His friend Artem Khalyavin, marketing director of a sports club, said: "All this place needs is a bit of money and we can take on the likes of Verbier."

Many political and business analysts agree that the president is a force for good. They argue that there is nothing wrong with inspiring public and private investment into grand schemes.

"Putin is the catalyst for these projects but he is not the reason behind them," said Boris Makarenko, of the independent Centre of Political Technologies. "These projects must be seen in the context of general upward economic movement in Russia. Putin is developing the country in a Western way.

"But he is smart enough to know that he must sell it in a Russian wrapping. If you unwrap the chocolate you'll find a Westerner inside even though the emblem on the outside may be of a bear or even a hammer and sickle."